P.M. Executive Briefing - Jan. 27
This Afternoon's Headlines:
ul>
W. Valley Not Too Keen On International Highway
Route planning for the CANAMEX truck highway between Edmonton, Alberta, and Mexico City has hit a hurdle in Maricopa County, Ariz. Residents near the proposed routes west of Phoenix do not want to live close to a truck highway. They are particularly opposed to a proposal to use the two-lane Loop 303, which goes through a retirement community.The portion of the CANAMEX route in question involves getting truckers from Interstate 10 to Wickenburg, Ariz., where they will pick up U.S. 93. Opponents want the route moved west to the Sun Valley Parkway or Wickenburg and Vulture Mine roads. The state Transportation Department and Maricopa Association of Governments are studying possible routes and this year will make a recommendation to the CANAMEX Corridor Project. Arizona Republic Online (01/27/00); Whiting, Brent
USA Truck: Profits Total $2.2 Million
Rising fuel prices caused USA Truck's fourth-quarter earnings to drop to $2.2 million (24 cents a share), down 12% from the year-earlier quarter, as revenue rose 42% to $51.6 million. The company says it had completed its merger with CCC Express with no problems. The fourth-quarter performance exceeded or matched analysts' projections.A.G. Edwards & Sons senior transportation analyst Donald Broughton says USA Truck spent the year increasing efficiency, with empty miles falling 0.6 percentage points to a five-year low of 8.7%. If USA Truck can use its now-larger fleet to its best advantage, says Dan Moore of Stephens Inc., it will likely embark on further acquisitions, perhaps within half a year.
Full-year net income was $8.6 million, down 18.1% from 1998, with revenue of $166.4 million, up 19.1%. Arkansas Democrat-Gazette Online (01/27/00) ; Wieland, Barbara
Special Freight Spurs Marten Transport Results
Marten Transport says it saw record revenue in 1999, gaining 13% year-over-year to $219.1 million, with net income of $8.5 million ($1.92 per diluted share), up 12%. The full-year operating ratio rose 0.3 percentage points to 91.9%.The company saw $2.8 million (66 cents per diluted share) in fourth-quarter net income, a 74% rise from the year-earlier quarter, on revenue of $60 million, up 22%. The quarterly operating ratio fell 1.7 percentage points to 90.4%. Journal of Commerce Online (01/27/00)
Western Star Doubles Earnings
Western Star Trucks Holdings says its net earnings for the fiscal second quarter more than doubled to C$14.5 million, a rise from C$6.4 million in the year-earlier quarter, with revenue increasing to C$499.2 million from C$456.3 million. Cash flow from operations was C$30.1 million, nearly a threefold increase, and gross profit margin rose 1.4 percentage points to 12.1%.Heavy truck sales were up 8%, and the Kelowna, British Columbia, plant continued to build 31 trucks a day.
For the first six months, net income rose to C$27.4 million from the year-earlier figure of C$10 million as revenue rose to C$989.5 million from C$834.1 million. Vancouver Sun (01/27/00) P. D4
Lawmaker Puts Bill in the Fast Lane
Virginia state Del. Joe Johnson (D-Abingdon) proposed keeping trucks or cars from using left lanes of interstates unless passing. Trucks are already not allowed to use left lanes on roads with three lanes in Virginia. The bill, HB 465, was prompted by an experience of being behind three slow-moving trucks using both lanes of Interstate 81, Johnson says.Some House Transportation Committee members say enforcement would be tough, and Del. Brian Moran (D) says his very congested Alexandria district has all lanes clogged in rush hour. Roanoke Times (01/26/00) P. B4; Nuckols, Christina; Sluss, Michael
Roadway Express on a Roll
Roadway Express' fourth-quarter net income per share came in at $1.09, beating a First Call/Thomson Financial average estimate of 95 cents and increasing from 51 cents in 1998's fourth quarter. Total net income was $20.6 million, up from $9.6 million, on revenues of $934.6 million, up from $805.9 million, and tonnage rose 10% year-over-year and revenue per ton increased 5.2%. "Fourth-quarter growth was almost triple that of the first half of the year," says CEO Michael Wickham.The increases were due to its strong move into regional service, Roadway says; its average hauls shortened and average shipments got larger. Burton Strauss of Dominick & Dominick says "an earlier-than-usual price increase" also helped Roadway's fourth-quarter results. Akron Beacon Journal (01/26/00) P. C7
Dana Confirms Plans to Expand Parts Plant
In order to allow fast response to the truck-parts market, Dana Canada will be expanding its Parish Structural Products plant in southwestern Ontario by 50% between February and August. Vice President of Human Resources Paul Teeple says a bigger payroll may be in the future as well, but he was unable to say how many more employees could be hired. London (Ontario) Free Press (01/26/00) P. A4Schneider in for the Long Haul
The major long-haul trucking company Schneider National has created a "Ship Now" module that allows online companies to link their Web sites to Schneider's back-end logistics systems.The online firms' customers can choose from a variety of shipment options and get shipment tracking and delivery confirmation while Schneider handles billing. Schneider handles its logistics customers' shipments through its own semi fleet and by contracting with United Parcel Service and Federal Express.
International Data Corp. senior research analyst Ting Piper said Schneider seems to have beaten competitors to this innovation, although he predicts that companies like J.B. Hunt and Menlo will not be far behind. Schneider could also be faced with competition from companies like Electronic Economy whose services outsource everything from the "buy now" button onward, Piper said. That includes logistics, inventory, processing payments and transactions, and handling customer interaction.
He predicted that the market is developing to serve online retailers that want to focus on their front-end portals and leave all the back-end to someone else. Interactive Week (01/24/00) Vol. 7, No. 3; P. 27; Duvall, Mel
© copyright 2000 INFORMATION, INC. Terms of Service
Ìý